Have a small position, under .30. Presently, I am holding but watching closely.
After speaking to their IR person yesterday, I am a little skeptical about this one.
The mine has not been active for several years, originally open pit, but those reserves are exhausted. IR implied mining underground would not 'necessarily' be more costly than open pit.
The original proposed $3 million loan, is now $4 million, which is not a done deal. According to IR, "the CEO is in discussion with a couple of potential lenders and they should know in 2-3 weeks". The loan is to fund underground mining. Is $4 million enough?
The officers and directors are being paid with stock options, no salary - I do not necessarily find this a plus.
IMO, The water-coal process is a non-issue. The Malaysia deal is dead, although I could not find any company release or information on their website to that effect.
The $10 million DOE grant they have appied for has nothing to do with gold mining and is to build a prototype on Silverado property. From my experience with DOE Grants, I think there is less than a 50-50 chance that grant will be approved. It is just an application -- makes good press, nothing more.
JMHO,
Merry |
